Citigroup CEO Jane Fraser has already taken a number of steps to simplify and optimize the operations of the big bank; in recent years, the financial institution has closed several retail banking branches around the world. We wrote about this in more detail in our articles below:
The big bank recently broke news is considering a reduction of more than 10% in the framework of the “Bora Bora” project in several large businesses. This may be related to the fact that the bank started announcing layoffs at the beginning of the week, which affect employees two levels below the CEO, according to a source familiar with the matter. Another source, who asked not to be named, knows that the layoffs amount to roughly 10% of the employees at the mentioned level.
The downsizing, which the bank says may continue next year, is part of Fraser’s strategy, which would simplify the management hierarchy and eliminate co-management structures. Citigroup’s official announcement does not mention the number of layoffs involved, but they say that the steps taken to reorganize the company involve some difficult decisions that are needed to align the bank’s structure with its strategy.
The reorganization will be Citigroup’s biggest overhaul in two decades. Even before the start of the restructuring plan, the bank paid out around 650 million dollars in severance pay for the 7,000 jobs eliminated in the first nine months of this year. Despite this, the number of employees in the bank remained unchanged at 240,000 people in the last four quarters, making Citigroup the second largest American bank after JP Morgan in terms of personnel.
Investors are likely to receive the news positively, as indicated by the fact that the bank’s share price is in a slight plus in pre-opening trading.
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Tags: begun Citigroup firing senior executives
